He had also written to India's Home Minister Sushil Kumar Shinde asking him to withdraw a 2002 order making federal consent compulsory for laws introduced into Delhi's assembly.

Addressing hundreds of supporters outside his party headquarters on Friday, Mr Kejriwal said his attempt to fight corruption by bringing in new legislation had been blocked by India's two leading parties, the Congress and the Bharatiya Janata Party (BJP).

"My cabinet has decided that we are quitting. Here is my resignation letter," he said.

The bill was blocked by opposition Congress and BJP MPs in a chaotic session at the Delhi Assembly earlier on Friday.

Later, as politicians tried to shout him down in the parliament, he said: "We need to look within us. People don't like politicians. I have read the constitution; nowhere does it say we need the centre's permission to table bills.

"I will consider myself fortunate if I have to sacrifice the chief minister's post and my life to eradicate corruption."

Mr Kejriwal, who has described himself as an anarchist, brought an unusual style to government, says the BBC's Sanjoy Majumder in Delhi.

The highlight of this was when he spent two nights in the open to press the federal government to grant him greater control over the city police.

He is now expected to launch his party's campaign for the national elections due in the summer, our correspondent adds.